Here is a look at silver and housing.
Silver
June 22 (King World News) – Top Citi analyst Tom Fitzpatrick on silver: Silver continues to test a triple support range at $25.68-$25.72, which is where the 200 day MA is converging with a 61.8% Fibonacci retracement and an interim horizontal support. If the support range were to give away, the next level we would be watching is a 76.4% Fibonacci retracement at $24.95. On the other hand, if silver were to bounce higher from here, the first level of resistance would be seen at $26.44 and we would also have a good resistance range at $26.88-$27.04, which is where the 55 day MA is converging with the June 3rd 2021 low….
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Also of importance…
Peter Boockvar: Existing home sales in May, likely reflecting many contracts signed during the January thru April time frame, totaled 5.8mm annualized, a touch above the estimate of 5.73mm. That though compares with 5.85mm in April, 6.01mm in March, 6.24mm in February and 6.66mm in January.
The slowing rate is in response to low inventory and aggressive price increases. With a lift in the number of homes for sale as is always the case come spring, months’ supply rose to 2.5 from 2.4 and which compares with the long term average of 6 months.
The median home price is now rising by a 24% pace with an average rate of 17% as we’re seeing big jumps in home sales priced above $500k. Taking out the influence of mix likely has home price gains between 13-15% which is out of control.
Those aggressive price gains is why 1st time buyers make up just 31% of purchases, the same level for the 3rd month in the past 4. There was a time, now long ago, that it was around 40%. The NAR said “Lack of inventory continues to be the overwhelming factor holding back home sales, but falling affordability is simply squeezing some 1st time buyers out of the market.”
Just when one thought that the Fed learned the housing lessons of the mid 2000’s, they’ve obviously learned nothing other than getting rid of no doc loans and boosting bank balance sheets. Not much else as housing is now becoming ever more unaffordable for those the Fed claims they are most trying to help. And now natural buyers are competing even further against the yield grabbing private equity industry as evidenced by the Blackstone news today with their purchase of Home Partners of America for $6b that owns single family rental homes.
HOPEFULLY, someone in Congress today challenges Powell on the state of the housing market and the Fed’s influence. What the Fed doesn’t understand that at this point their so called ‘powerful accommodation’ is now responsible for slowing down the most interest rate sensitive part of the US economy.
To listen to Dr. Leeb discuss the gold and silver takedown, why the pullback is most likely already close to being finished and why both metals are headed into the stratosphere CLICK HERE OR ON THE IMAGE BELOW.
To listen to Alasdair Macleod discuss this week’s takedown in the gold and silver markets and what to expect next CLICK HERE OR ON THE IMAGE BELOW.
Also just released: Bullion Banks Cover Gold Shorts, But How Many Longs Are Left To Shake Out? CLICK HERE.
Also just released: Gold Bull Alert, Plus 3 Stunning Charts CLICK HERE.
Also just released: Greyerz – Gold And The Coming Global Economic Meltdown CLICK HERE.
Also just released: “This Has Certainly Been A Week For The Ages, And A Major Wakeup Call For Everybody!” CLICK HERE.
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